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German minister happy with Qatar gas deal

Shiva Singh by Shiva Singh
30 November 2022
in World News
Orange,Workwear,With,Logo,In,Arabic,And,English.,Qatargas,Is

Orange workwear with logo in Arabic and English. Qatargas is the world's largest liquefied natural gas (LNG) company. April 2019, Doha/ Qatar.

Belgium, (Brussels Morning Newspaper) German Minister for Economic Affairs and Climate Action Robert Habeck noted on Tuesday he was happy with the liquefied natural gas (LNG) deal with Qatar.

Habeck pointed out that the deal helps Germany to wean itself off Russian gas, but stressed that Berlin will have to limit gas imports in the future to achieve carbon neutrality by 2045.

Commenting on the deal at a business conference in Berlin on Tuesday, Habeck noted “15 years is great… I wouldn’t have had anything against 20 [years] or longer contracts.”

According to Habeck, German will have to start cutting consumption of natural gas in the mid-2030s to meet its climate targets.

Also on Tuesday, Saad Sherida al-Kaabi, Qatari Minister of Energy, noted in an interview with Bild daily that Doha is willing to supply Germany with more gas.

He stressed that Qatar wants to “contribute to efforts to support energy security in Germany and Europe,” pointing out that “Germany represents the largest gas market in Europe.”

Supply agreement

The state-owned QatarEnergy struck a deal with ConocoPhilips on Tuesday to supply Germany with 2 million tonnes of LNG per year for at least 15 years starting with 2026.

Talks took several months as Germany objected to long-term agreements that Qatar usually wants to justify investing in LNG infrastructure, according to DW reporting on Tuesday.

The shipments are to be delivered to Brunsbüttel, where Germany is planning to complete a LNG terminal by 2026. Germany is setting up floating LNG terminals as a temporary solution until it finishes land-based terminals.

Habeck pointed out that Germany wants to take advantage of the most favourable offers. “That includes Qatar, but it’s also not the only supplier on the world market,” he noted.

German Chancellor Olaf Scholz welcomed the gas deal as a step towards Germany’s energy security and diversification of supply.

The German Association of Energy and Water Industries (BDEW) commented on the deal, pointing out that 2 million tonnes of LNG were equivalent to approximately 2.8 billion cubic metres of natural gas.

The association stressed that the quantity would cover roughly one third of the planned Brunsbüttel terminal’s annual capacity. “This contract alone replaces around 6% of Russian gas shipments in 2021,” BDEW concluded.

Related News:

  • Qatar Labour Minister to EP MEPs: Qatar made major reforms; exposed to “racist campaign”
  • Germany reaches natural gas supply deal with Qatar
  • EU deputies “not happy” with EU deal on migration
  • Qatar’s Foreign Minister denies any involvement in Qatargate affair
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